What the Cannabis Act of 2018 in Canada Means for the Investors

 

The cannabis industry is quickly becoming big business. Last year, for the very first time, U.S. consumer spending eclipsed $10 billion. It is expected that this expenditure will increase to $ 23 billion by 2022. Currently, 33 states including Washington, DC have legalized medical cannabis programs, and 11 states have legalized cannabis for adult use. As more and more states legalize cannabis, the cannabis industry continues to improve.



After imposing Canada’s Cannabis Act of 2018, it legalized the sale of 30 grams of cannabis to adults from government-licensed shops. According to the Canadian Prime Minister Justin Trudeau, ‘The Cannabis Act’ is created for better the health and safety of Canadians, to keep cannabis out of the reach of youth, and to stop criminals from making profit. Want to know about cannabis investment opportunities? Scroll the page and know what things you should keep in your mind if you want to invest in the cannabis industry.

As the industry and investors prepare for the establishment of a brand-new world of cannabis in Canada, several companies participated in this historic event, and the news that followed immediately showed the momentum witnessed by the industry. Executives in the marijuana industry also predicted a chain reaction: new regulations force neighboring countries to legalize to prevent tax losses. They say that more legal states increase the likelihood that the government will take action to remove restrictions at the national level.

Many leading cannabis companies today enjoy the benefits of high company valuations. Although this is enough to persuade some investors to join the game, it is important to remember that a company's valuation depends largely on market hype. Since the cannabis industry is relatively new and has not yet been verified, it is not clear whether the market valuations we are seeing will stabilize. If investors end up overestimating the potential of the legal field of cannabis, these valuations may eventually fall. Although all states are working towards the legalization of marijuana, efforts to legalize marijuana nationwide are still far away. Investors should note that federal legalization is certainly not guaranteed. This means that companies face very different regulations based on their country/region.

Investors who want to invest in the legal cannabis industry should remember that this sector is very crowded. Hundreds of companies are competing for dominance in a developing global industry. Among these companies, very few will become major players in the market. Many other companies may remain small or even close operations under market pressure. Some stocks are safer than others, but for everyday investors, it is difficult to predict which companies will become the best or worst. You can take help of any online investment community if you want to know cannabis investment opportunities in the future.

 

Comments

Post a Comment

Popular posts from this blog

How to Reach Small-Cap Companies and Make a Smart Investment Decision?

Small-cap companies have low revenue and usually a smaller workforce. Furthermore, the market is highly volatile and a suitable investment path for market-savvy investors. They have grown to high potential and can outperform large-cap companies at a certain point. There is no more important question investors face than how to find quality information on small-cap companies and emerging industry verticals. If you’re looking for better early-stage investment opportunities, being a part of a  small-cap digital awarenessportal  can be a good start. It features companies that can be trusted with information and help you capture accurate and timely information on several industries. As small-cap companies are among the exciting segments these days, you shouldn’t miss out on capturing quality information that matches your potential upside. Here’s what you can do further:     Identify Small-Cap Companies It is always wise to connect with industry professionals, financial experts, and influ
Read more

The Future of Renewable Energy Investment Opportunities

Image
  According to the IEA (International Energy Agency), global renewable energy consumption will increase up to 111 billion BTUs (British Thermal Units) in 2021. This is up from 106 quadrillion BTUs in 2020. The growth indicates how the demand for renewable energy has increased significantly in the past few years.   The good news for our planet is that renewable energy technology is getting better and more affordable than ever. As a result, it is creating huge renewable energy investment opportunities for companies, governments, and public investors.   In this post, we will take a look at how public investors can capitalize on these trends and invest in the renewable energy industry. Renewable Energy Investment Competition in the renewable energy industry is rising, which in turn opening various opportunities for individual investors and businesses. There are some attractive renewable energy investment opportunities but it requires a great understanding of its future scalability.
Read more

What Are Technology Investment Opportunities?

Image
 Summary: Technology is an ever-growing sector that always brings innovation and bigger investment opportunities for startups, entrepreneurs, enterprises, and public investors. This sector includes stocks combined with the research, creation, and distribution of technology-based products or services. Technology stocks offer investors a lot of investment opportunities. It can be anything from a computer to software, smartphone to website. In fact, the sector gives the highest returns of all ranked market sectors at 34.28% in 2017. In this article, you will know what are those technology investment opportunities can give you higher returns in the near future. Body: Technology changes rapidly and those businesses which don’t adapt to the pace of change can quickly fall behind, or even go out of business. At the same time, emerging companies can make a big splash just by investing in the growing business opportunity. Technology is an extremely wide area. It has expanded far beyond what wo
Read more